The coalition government has pledged to assist Castlemaine Hospital with a sum worth $10 million, as the services including obstetrics provided by the facility are threatened to come to an end in the next five years.

On Thursday, National Party leader Peter Ryan declared that the funding to Castlemaine would be squandered for its maintenance problems and capital improvement.

The party had talks with the hospital and they discussed about improvement of services required for the Castlemaine community and the hospital board, as told by Steven Oliver, party's Bendigo West candidate.

He added that the funding would help the facility to improve its accident and emergency department and establishing another operation theatre.

"There will be better opportunities for procedures, and it means the hospital will be able to take on extra surgeries and help the overflow of Bendigo, Kyneton and Maryborough hospitals", said Oliver.

Anita Donlon, Liberal candidate for Bendigo West expressed that there was a good response from the hospital staff after the announcement of funding.

But, Bendigo West Labor candidate Maree Edwards gave her views against the announcement and stated that she would work with the hospital and Department of Health to recognize their requirement in a precise manner, so that funding could be allocated accordingly.